September 19 (legislative day, September 16), 2025
Mr. Durbin introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
To require the Secretary of Housing and Urban Development to establish an emerging developer fund program to provide competitive grants to nonprofit housing organizations and community development financial institutions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Sparking Production of Urban and Rural Housing Act
or the SPUR Housing Act
.
Sec. 2. Definitions
In this Act:
(1) Community development financial institution
The term community development financial institution means an institution that has been certified as a community development financial institution (as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702)) by the Secretary of the Treasury.
(2) Distressed community
The term distressed community has the meaning given the term qualified census tract in section 42(d)(5)(B)(ii) of the Internal Revenue Code of 1986.
(3) High opportunity area
The term high opportunity area has the meaning given the term in section 1282.1 of title 12, Code of Federal Regulations, or any successor regulation.
(4) Emerging developer
The term emerging developer means a developer that has—
(A)
limited real estate development experience and limited liquidity or net worth;
(B)
any other qualifications as determined appropriate by the Secretary.
(5) Institution of higher education; part B institution
The terms institution of higher education and part B institution have the meanings given those terms in section 101 and 322, respectively, of the Higher Education Act of 1965 (20 U.S.C. 1001, 1061).
(6) Secretary
The term Secretary means the Secretary of Housing and Urban Development.
Sec. 3. Emerging developer fund program
(a) In general
Not later than 1 year after the date of enactment of this Act, the Secretary shall establish an emerging developer fund program to provide competitive grants to nonprofit housing organizations and community development financial institutions.
(b) Use of amounts
Nonprofit housing organizations and community development financial institutions that receive amounts under this section shall use such amounts—
(1)
to offer financing to emerging developers undertaking affordable housing and community development projects, including—
(A)
predevelopment loans;
(B)
loan loss reserves;
(C)
grants;
(D)
risk sharing; and
(E)
credit enhancements, including interest rate buy downs;
(2)
to capitalize a fund to support affordable housing and community development projects of emerging developers;
(3)
to offer capacity-building training, and technical assistance programs to emerging developers; and
(4)
for other uses approved by the Secretary.
(c) Application
Each nonprofit housing organization and community development financial institution that applies for a grant under this section shall submit an application to the Secretary at such time and in such manner as the Secretary may reasonably require and shall—
(1)
demonstrate plans for providing comprehensive training, technical assistance, and financing to emerging developers; and
(2)
include information about past work completed by the organization or institution.
(d) Awarding of grants
The Secretary shall award grants under this section based on the ability of an applicant to—
(1)
identify and quantify the need for development capacity building in the community of focus, including emerging developers with an intent to pursue affordable housing and community development projects, including in distressed communities;
(2)
provide comprehensive real estate development capacity building and ongoing technical assistance, including by helping emerging developers to—
(A)
develop and manage a construction budget;
(B)
determine financing needs;
(C)
identify and secure sources of private and public capital, including preparing applications for tax credits under section 42 of the Internal Revenue Code of 1986;
(D)
structure capital stacks;
(E)
understand loan terms;
(F)
conduct business planning;
(G)
conduct strategic planning;
(H)
prepare bids;
(I)
structure financial statements; and
(J)
implement bonding strategies;
(3)
provide affordable lending products for affordable housing and community development projects, such as predevelopment loans and other relevant products;
(4)
offer mentoring and networking opportunities for emerging developers;
(5)
build partnerships with institutions of higher education, including community colleges and part B institutions, to provide real estate development course work and other resources to current and aspiring real estate developers;
(6)
provide ongoing technical assistance after completion of any curriculum offered at the institutions described in paragraph (5); and
(7)
track program outcomes, including the total number and volume of loans originated, total development costs, geographic areas served, and income streams created for the borrower.
(e) Priority
When awarding grants under this section, the Secretary shall prioritize organizations that—
(1)
are providing lending or technical assistance to emerging developers—
(A)
with limited experience;
(B)
who are undercapitalized; or
(C)
who intend to focus on the development of affordable housing and community development projects in distressed communities and high opportunity areas; and
(2)
have a history of providing support to emerging developers.
(f) Limitation
No organization or institution may receive an award amount under this section that is greater than 15 percent of the amount appropriated pursuant to subsection (h).
(g) Coordination with other Federal agencies
The Secretary shall coordinate with the Secretary of the Treasury with respect to the alignment of program under this section and reporting requirements under this section with similar requirements of the Community Development Financial Institutions Fund under the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4701 et seq.).
(h) Authorization of appropriations
There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2026 through 2030.